If you're lucky enough to have $1,000 burning a hole in your pocket, then it could be worth putting it to work in the share market.
Especially given the potential returns on offer from some ASX shares right now.
For example, two that Morgans is tipping to provide big returns over the next 12 months are listed below.
Here's why they could be good options for a $1,000 investment:
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Qantas Airways Limited (ASX: QAN)
Morgans thinks that this airline operator's shares are great value at current levels. The broker has the company on its best ideas list with an add rating and $7.30 price target.
It likes Qantas due to its cheap valuation and structurally stronger earnings. It explains:
QAN is trading at a material discount compared to pre-COVID multiples, despite having structurally higher earnings, a much stronger balance sheet, a better domestic market position, a higher returning International business and more diversification (stronger Loyalty/Freight earnings). The strong pent-up demand to travel post-COVID should result in a healthy demand environment for some time, underpinning further earnings growth over FY24/25. QAN's balance sheet strength positions it extremely well for its upcoming EBIT-accretive fleet reinvestment and further capital management initiatives (recently announced another A$500m on-market share buyback at its FY23 result).
A $1,000 investment would turn into almost $1,300 if Morgans is on the money with its recommendation.
South32 Ltd (ASX: S32)
The broker remains positive on this diversified miner and has an add rating and $4.00 price target on the ASX share.
It likes South32 due to the diversity of its operations and the de-risking of its portfolio. It explains:
S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32's risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.
Based on its current share price, a $1,000 investment could turn into $1,400 if its shares reach Morgans' price target.
